Sinouk Coffee eyes regional franchise expansion
Sinouk Coffee eyes regional franchise expansion
Sinouk Coffee, one of major franchise coffee shops in Laos has strong hopes to expand its market into neighbouring nations after the establishment of the Asean Economic Community at the end of 2015.
“We are preparing oursel ves to welcome the AEC as we see opportunities to expand the business” Sinouk Coffee Shop owner, Mr Sinouk Sisombath said in an exclusive interview with Vientiane Times in Champassak province recently.
The establishment of the AEC will provide greater opportunities for enterprises in Asean to expand their businesses into nei ghbouring countries thanks to the abolishment of import and export tariffs, one of the main factors which enables enterprises from one country to run businesses in another country competitively.
Regional integration will also help businesses move their production base and labour force freely throughout the region.
Mr Sinouk, who is also Lao Coffee Association President, said that at present, Sinouk Coffee Shop has three franchise businesses in Thailand ahead of the establishment of the AEC, after learning that it was possible for the Lao coffee brand to enter one of the largest coffee markets in Asean.
There are eight Sinouk Coffe franchise shops in Laos. The latest Sinouk Coffee Shop was opened last month in Phonsineuan village, Sisattanak district in central Vientiane, he said.
Mr Sinouk said that his company would focus on improving human resources so as it can deliver the best service to customers, adding that the company also needs more funds to expand the franchise shops in local and foreign markets.
He said that most of the coffee from Sinouk Coffee Shop was from his own coffee plantation. Mr Sinouk will also need to purchase coffee from other plantations if the franchise businesses go smoothly. However, he said that the shop will use coffee which meets the requirements of the franchise so as all of the shops can maintain the same coffee taste.
When asked what needs to be done to make Lao coffee enter the international market he said one of the major things Lao coffee manufacturers need to do is to improve image of Lao coffee in order to attract more foreign consumers, adding that Lao coffee has huge potential due to its unique taste and marketability.
Mr Sinouk said that with help from Champassak authorities, he will construct a coffee museum which will provide a place for tourists and coffee drinkers to get information about the history of coffee plantations on the Bolaven plateau and the coffee manufacturing process.
One of the advantages which Lao coffee manufacturers expect to win the hearts of foreign consumers is the fact that Lao coffee is organic. He said that there was a need to have Lao coffee certified as organic so that it can be marketed as such on foreign markets.
There are a number of foreign franchise coffee shops in Laos. Most of the shops are from Thailand, making competition in the coffee franchise business strong for a country with only six million people.
vientiane times
